Local Government Energy Audit:

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1 Local Government Energy Audit: Energy Audit Report BOE Warehouse Brick Township Board of Education Copyright 2017 TRC Energy Services. All rights reserved. Reproduction or distribution of the whole, or any part of the contents of this document without written permission of TRC is prohibited. Neither TRC nor any of its employees makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any data, information, method, product or process disclosed in this document, or represents that its use will not infringe upon any privately-owned rights, including but not limited to, patents, trademarks or copyrights. 34 Princeton Avenue Brick, NJ April 17, 2018 Final Report by: TRC Energy Services

2 Disclaimer The intent of this energy analysis report is to identify energy savings opportunities and recommend upgrades to the facility s energy using equipment and systems. Approximate savings are included in this report to help make decisions about reducing energy use at the facility. This report, however, is not intended to serve as a detailed engineering design document. Further design and analysis may be necessary in order to implement some of the measures recommended in this report. The energy conservation measures and estimates of energy savings have been reviewed for technical accuracy. However, estimates of final energy savings are not guaranteed, because final savings may depend on behavioral factors and other uncontrollable variables. TRC Energy Services (TRC) and New Jersey Board of Public Utilities (NJBPU) shall in no event be liable should the actual energy savings vary. installation costs are based on TRC s experience at similar facilities, pricing from local contractors and vendors, and/or cost estimates from RS Means. The owner of the facility is encouraged to independently confirm these cost estimates and to obtain multiple estimates when considering measure installations. Since actual installed costs can vary widely for certain measures and conditions, TRC and NJBPU do not guarantee installed cost estimates and shall in no event be held liable should actual installed costs vary from estimates. New Jersey s Clean Energy Program (NJCEP) incentive values provided in this report are estimates based on program information available at the time of the report. Incentive levels are not guaranteed. The NJBPU reserves the right to extend, modify, or terminate programs without prior notice. The owner of the facility should review available program incentives and eligibility requirements prior to selecting and installing any energy conservation measures.

3 Table of Contents 1 Executive Summary Facility Summary Your Cost Reduction Opportunities... 1 Energy Conservation Measures... 1 Energy Efficient Best Practices... 3 On-Site Generation Measures Implementation Planning Facility Information and Existing Conditions Project Contacts General Site Information Building Occupancy Building Envelope On-Site Generation Energy-Using Systems... 6 Lighting System... 6 Heating Ventilation and Air Conditioning (HVAC)... 7 Domestic Hot Water Heating System... 8 Building Plug Load Water-Using Systems Site Energy Use and Costs Total Cost of Energy Electricity Usage Natural Gas Usage Benchmarking Energy End-Use Breakdown Energy Conservation Measures Recommended ECMs Lighting Upgrades ECM 1: Install LED Fixtures ECM 2: Retrofit Fluorescent Fixtures with LED Lamps and Drivers Lighting Control Measures ECM 3: Install Occupancy Sensor Lighting Controls ECMs Evaluated But Not Recommended Install Tankless Water Heater Energy Efficient Best Practices Close Doors and Windows Practice Proper Use of Thermostat Schedules and Temperature Resets Plug Load Controls Water Conservation LGEA: Energy Audit Report BOE Warehouse

4 6 On-Site Generation Measures Photovoltaic Combined Heat and Power Demand Response Project Funding / Incentives SmartStart Direct Install SREC Registration Program Energy Improvement Program Energy Purchasing and Procurement Strategies Retail Electric Supply Options Retail Natural Gas Supply Options Appendix A: Equipment Inventory & Recommendations Appendix B: ENERGY STAR Statement of Energy Performance LGEA: Energy Audit Report BOE Warehouse

5 Table of Figures Figure 1 Previous 12 Month Utility Costs... 2 Figure 2 Potential Post-Implementation Costs... 2 Figure 3 Summary of Energy Reduction Opportunities... 2 Figure 4 Project Contacts... 5 Figure 5 - Building Schedule... 5 Figure 6 - Utility Summary... 9 Figure 7 - Energy Cost Breakdown... 9 Figure 8 - Electric Usage & Demand Figure 9 - Electric Usage & Demand Figure 10 - Natural Gas Usage Figure 11 - Natural Gas Usage Figure 12 - Energy Use Intensity Comparison Existing Conditions Figure 13 - Energy Use Intensity Comparison Following Installation of Recommended Measures Figure 14 - Energy Balance (kbtu/ft 2 and %) Figure 15 Summary of Recommended ECMs Figure 16 Summary of Lighting Upgrade ECMs Figure 17 Summary of Lighting Control ECMs Figure 18 Summary of Measures Evaluated, But Not Recommended Figure 19 costs and benefits for a 7.8-kW solar array on this site Figure 20 - ECM Incentive Program Eligibility LGEA: Energy Audit Report BOE Warehouse

6 1 EXECUTIVE SUMMARY The New Jersey Board of Public Utilities (NJBPU) has sponsored this Local Government Energy Audit (LGEA) Report for BOE Warehouse. The goal of an LGEA report is to provide you with information on how your facility uses energy, identify energy conservation measures (ECMs) that can reduce your energy use, and provide information and assistance to help facilities implement ECMs. The LGEA report also contains valuable information on financial incentives from New Jersey s Clean Energy Program (NJCEP) for implementing ECMs. This study was conducted by TRC Energy Services (TRC), as part of a comprehensive effort to help public facilities in New Jersey reduce their control their energy costs and help protect our environment by reducing energy demand statewide. 1.1 Facility Summary The Brick Township Board of Education Central Receiving Warehouse (BOE Warehouse) is a 9,900 square foot storage and maintenance facility. It is occupied year round by two full time staff, plus others as needed. The building is used primarily for storage and maintenance of equipment and supplies for the school system. The building was constructed in It consists of concrete masonry block with a sloped asphalt shingle roof. It has four doors, two garage doors, and only two windows. It contains one small receiving office, which is open weekdays from 8:00 AM to 5:00 PM. The office area contains standard office equipment, plus one Gree packaged terminal heat pump (PTHP) unit for heating and cooling. The rest of the building consists of large storage and maintenance areas with high bay ceilings, heated by two 150 MBH Modine unit heaters. Most of the storage areas are occupied only as needed. Interior lighting is provided mostly by 4-foot linear T8 fluorescent fixtures. Exterior lighting around the building consists of compact fluorescent recessed cans, plus some newly installed LED spotlights. A thorough description of the facility and our observations are located in Section Your Cost Reduction Opportunities Energy Conservation Measures TRC evaluated the costs and savings for four energy efficiency measures. Three measures are recommended for implementation. Together the three recommended measures represent an opportunity for BOE Warehouse to reduce its annual energy costs for the Warehouse by about $1,051 and annual greenhouse gas emissions by 8,246 lbs CO 2e. We estimate that if all measures are implemented as recommended, the project would likely pay for itself in energy savings alone in about 9.5 years. The breakdown of existing utility costs is shown in Figure 1 below. Figure 2 shows the estimated reduction in annual utility that would result from the upgrades. Together these measures represent an opportunity to reduce energy usage at the Brick Township BOE Warehouse by 8%. LGEA: Energy Audit Report BOE Warehouse 1

7 Figure 1 Previous 12 Month Utility Costs Figure 2 Potential Post-Implementation Costs $3,000 $2,500 $2,492 $2,751 $2,751 $2,000 $1,441 Gas $2,751 52% Electric $2,492 48% $1,500 $1,000 $500 $0 % Reduction: Electric 42% Gas 0% $5,244 Pre-Implementation Cost Post-Implementation Cost A detailed description of BOE Warehouse s existing energy use can be found in Section 3. Estimates of the total cost, energy savings, and financial incentives for the proposed energy efficient upgrades are summarized below in Figure 3. A brief description of each category can be found below and a description of savings opportunities can be found in Section 4. Figure 3 Summary of Energy Reduction Opportunities Energy Conservation Measure Lighting Upgrades Recommend? Electric (kwh) Peak Demand Fuel Energy Cost Install Cost Incentive * (kw) (MMBtu) Net Cost Lighting Upgrades generally involve the replacement of existing lighting components such as lamps and ballasts (or the entire fixture) with higher efficiency lighting components. These measure save energy by reducing the power used by the lighting components due to improved electrical efficiency. Lighting Controls measures generally involve the installation of automated controls to turn off lights or reduce light output when not needed. Automated control reduces reliance on occupant behavior for adjusting lights. These measures save energy by reducing the amount of time lights are on. Domestic Hot Water upgrade measures generally involve replacing older inefficient domestic water heating systems with modern energy efficient systems. New domestic hot water heating systems can provide equivalent, or greater, water heating capacity compared to older systems at a reduced energy cost. These measures save energy by reducing the fuel used for domestic hot water heating due to improved heating efficiency or reducing standby losses. Simple CO 2 e Payback Emissions Period Reduction (yrs)** (lbs) 6, $ $9, $ $8, ,534 ECM 1 Install LED Fixtures Yes $ $ $0.00 $ ECM 2 Retrofit Fluorescent Fixtures with LED Lamps and Drivers Yes 5, $ $8, $ $7, ,553 Lighting Control Measures 1, $ $1, $ $1, ,709 ECM 3 Install Occupancy Sensor Lighting Controls Yes 1, $ $1, $ $1, ,709 *** Install Tankless Water Heater No 2, $ $ $ $ ,234 TOTALS 8, $1, $11, $1, $9, ,243 * - All incentives presented in this table are based on NJ Smart Start Building equipment incentives and assume proposed equipment meets minimum performance criteria for that program. ** - Simple Payback Period is based on net measure costs (i.e. after incentives). *** Measures highlighted in red were evaluated, but are not recommended for implementation. Values estimated for these measures are not included in ECM totals. LGEA: Energy Audit Report BOE Warehouse 2

8 Energy Efficient Best Practices TRC also identified four low cost (or no cost) energy efficient best practices. A facility s energy performance can be significantly improved by employing certain behavioral or operational adjustments and by performing better routine maintenance on building systems. These best practices can extend equipment lifetime, improve occupant comfort, provide better health and safety, as well as reduce annual energy and O&M costs. It is our understanding Brick Township Board of Education is already implementing many of the best practices described in the audit reports, however they are listed for representative purposes only. Close Doors and Windows Practice Proper Use of Thermostat Schedules and Temperature Resets Install Plug Load Controls Water Conservation For details on these energy efficient best practices, please refer to Section 5. On-Site Generation Measures TRC evaluated the potential for installing on-site generation for the Brick Township BOE Warehouse. Based on the configuration of the site and its loads there appears to be sufficient rooftop potential to install solar PV system that could displace nearly all of the building s current electric service. For details on our evaluation and on-site generation potential, please refer to Section Implementation Planning To realize the energy savings from the ECMs listed in this report, a project implementation plan must be developed. Available capital must be considered and decisions need to be made whether it is best to pursue individual ECMs separately, groups of ECMs, or a comprehensive approach where all ECMs are implemented together, possibly in conjunction with other facility upgrades or improvements. Rebates, incentives, and financing are available from NJCEP, as well as other sources, to help reduce the costs associated with the implementation of energy efficiency projects. Prior to implementing any measure, please review the relevant incentive program guidelines before proceeding. This is important because in most cases you will need to submit applications for the incentives prior to purchasing materials or commencing with installation. The ECMs outlined in this report may qualify under the following program(s): SmartStart Direct Install For facilities wanting to pursue only selected individual measures (or planning to phase implementation of selected measures over multiple years), incentives are available through the SmartStart program. To participate in this program you may utilize internal resources, or an outside firm or contractor, to do the final design of the ECM(s) and do the installation. Program pre-approval is required for some SmartStart incentives, so only after receiving pre-approval should you proceed with ECM installation. The incentive estimates listed above in Figure 3 are based on the SmartStart program. More details on this program and others are available in Section 8. This facility may also qualify for the Direct Install program which can provide turnkey installation of multiple measures, through an authorized network of participating contractors. This program can provide substantially higher incentives that SmartStart, up to 70% of the cost of selected measures, although LGEA: Energy Audit Report BOE Warehouse 3

9 measure eligibility will have to be assessed and be verified by the designated Direct Install contractor and, in most cases, they will perform the installation work. For larger facilities with limited capital availability to implement ECMs, project financing may be available through the Energy Improvement Program (ESIP). Supported directly by the NJBPU, ESIP provides government agencies with project development, design, and implementation support services, as well as, attractive financing for implementing ECMs. An LGEA report (or other approved energy audit) is required for participation in ESIP. Please refer to Section 8.4 for additional information on the ESIP Program. The Demand Response Energy Aggregator is a (non-njcep) program designed to reduce electric loads at commercial facilities, when wholesale electricity prices are high or when the reliability of the electric grid is threatened due to peak power demand. Demand Response (DR) service providers (a.k.a. Curtailment Service Providers) are registered with PJM, the independent system operator (ISO) for mid-atlantic state region that is charged with maintaining electric grid reliability. By enabling grid operators to call upon commercial facilities to reduce their electric usage during times of peak demand, the grid is made more reliable and overall transmission costs are reduced for all ratepayers. Curtailment Service Providers provide regular payments to medium and large consumers of electric power for their participation in DR programs. Program participation is voluntary and facilities receive payments whether or not they are called upon to curtail their load during times of peak demand. Refer to Section 7 for additional information on this program. Additional information on relevant incentive programs is located in Section 8 or: LGEA: Energy Audit Report BOE Warehouse 4

10 2 FACILITY INFORMATION AND EXISTING CONDITIONS 2.1 Project Contacts Figure 4 Project Contacts Name Role Phone # Customer Will Kolibas Exec Director of Facilities wkolibas@brickschools.org James W. Edwards Business Administrator jedwards@brickschools.org TRC Energy Services Tom Page Auditor tpage@trcsolutions.com (732) General Site Information On March 2, 2017, TRC performed an energy audit at the BOE Warehouse located in Brick, New Jersey. TRC s team met with Will Kolibas to review the facility operations and help focus our investigation on specific energy-using systems. The BOE Warehouse is a 9,900 square foot storage and maintenance facility that was constructed in It contains one small receiving office with standard office equipment. The office occupies about 10% of the building floor space. It is the only area of the building with air conditioning. Most of the storage areas are occupied only as needed. 2.3 Building Occupancy The building is occupied year round by two full time staff, plus others as needed. The building is used primarily for storage and maintenance of equipment and supplies for the school system. The building is open weekdays from 8:00 AM to 5:00 PM. Figure 5 - Building Schedule 2.4 Building Envelope Building Occupancy Schedule Building Name Weekday/Weekend Operating Schedule Brick Township Board of Education Warehouse Weekday 8:00 AM - 5:00 PM Brick Township Board of Education Warehouse Weekend NONE The building is constructed of concrete masonry block with a sloped asphalt single roof. It has four doors, two 12 foot by 12 foot insulated garage doors, and two windows. Windows are double-paned glass. All door and window seals appeared to be in good condition. LGEA: Energy Audit Report BOE Warehouse 5

11 Image 1: Warehouse Main Entrance 2.5 On-Site Generation Brick Township BOE Warehouse does not have any on-site electric generation capacity. 2.6 Energy-Using Systems Please see Appendix A: Equipment Inventory & Recommendations for an inventory of the facility s equipment. Lighting System Interior lighting is provided mostly by 4-foot linear T8 fluorescent fixtures. Exterior perimeter lighting around the building consists of compact fluorescent recessed cans, plus some newly installed LED spotlights. Lighting control is provided by manual switches. There is a parking area, but it is not illuminated. LGEA: Energy Audit Report BOE Warehouse 6

12 Image 2: Interior and Exterior Lighting Fixtures Heating Ventilation and Air Conditioning (HVAC) The receiving office is heated and cooled by one Gree packaged terminal heat pump (PTHP) unit. It is five years old and has a heating and cooling capacity of 12,000 Btu/hr. It has a seasonal energy efficiency rating (SEER) of 10.7 SEER for cooling and a coefficient of performance (COP) of 3.1 for heating, which is reasonably efficient for a PTHP unit. The rest of the building consists of large storage and maintenance areas with high bay ceilings, heated by two ceiling-mounted, gas-fired 150 MBH Modine warm air unit heaters, which are both about 15 years old and in fairly good condition. There is no cooling in storage areas, although there are two small exhaust fans. Heating and cooling units are controlled manually. Because of the building s low occupancy, heating and cooling units are turned on when the space is occupied, used as needed, and turned down or turned off when occupants leave the space. Image 3: Heating, Ventilation, and Air Conditioning Systems LGEA: Energy Audit Report BOE Warehouse 7

13 Domestic Hot Water Heating System Domestic hot water is provided by a 15-gallon A.O. Smith hot water heater. It is 22 years old, but in good condition. The hot water heater supplies one small rest room and clothes washer. Please see Section 4.2 for more details on the proposed domestic hot water upgrade and why it was not included among the recommended measures in Figure 3. Image 4: Domestic Hot Water Heating Building Plug Load The building has a low occupancy and typically no heavy equipment used onsite, therefore the building plug load is minimal. The receiving office has typical office equipment, including two computers and two printers. The facility has one refrigerator and one washing machine. All plug load equipment are relatively new and efficient models. Image 5: Refrigeration and Plug Load Equipment 2.7 Water-Using Systems The building has one small restroom. All water-using fixtures were found to be low-flow devices that meet current commercial building standards for water conservation. LGEA: Energy Audit Report BOE Warehouse 8

14 3 SITE ENERGY USE AND COSTS Utility data for electricity and natural gas was analyzed to identify opportunities for savings. In addition, data for electricity and natural gas was evaluated to determine the annual energy performance metrics for the building in energy cost per square foot and energy usage per square foot. These metrics are an estimate of the relative energy efficiency of this building. There are a number of factors that could cause the energy use of this building to vary from the typical energy usage profile for facilities with similar characteristics. Local weather conditions, building age and insulation levels, equipment efficiency, daily occupancy hours, changes in occupancy throughout the year, equipment operating hours, and energy efficient behavior of occupants all contribute to benchmarking scores. Please refer to the Benchmarking section within Section 3.4 for additional information. 3.1 Total Cost of Energy The following energy consumption and cost data is based on the last 12-month period of utility billing data that was provided for each utility. A profile of the annual energy consumption and energy cost of the facility was developed from this information. Figure 6 - Utility Summary Utility Summary for Brick Township Board of Education Fuel Usage Cost Electricity 19,414 kwh $2,492 Natural Gas 2,927 Therms $2,751 Total $5,244 The current annual energy cost for this facility is $5,244 as shown in the chart below. Figure 7 - Energy Cost Breakdown Gas $2,751 52% Electric $2,492 48% $5,244 LGEA: Energy Audit Report BOE Warehouse 9

15 3.2 Electricity Usage Electricity is provided by JCP&L. The average electric cost over the past 12 months was $0.128/kWh, which is the blended rate that includes energy supply, distribution, and other charges. This rate is used throughout the analyses in this report to assess energy costs and savings. The monthly electricity consumption and peak demand are shown in the chart below. Figure 8 - Electric Usage & Demand Figure 9 - Electric Usage & Demand Electric Billing Data for Brick Township Board of Education Electric Period Days in Total Electric Usage Demand (kw) Ending Period Cost (kwh) 4/15/ , $248 5/14/ , $175 6/15/ , $168 7/16/ , $174 8/14/ , $169 9/16/ , $192 10/15/ , $163 11/16/ , $191 12/14/ , $205 1/18/ , $288 2/16/ , $307 3/16/ , $238 Totals , $2, , $2,492 LGEA: Energy Audit Report BOE Warehouse 10

16 3.3 Natural Gas Usage Natural gas is provided by NJ Natural Gas. The average gas cost for the past 12 months is $0.940/therm, which is the blended rate used throughout the analyses in this report. The monthly gas consumption is shown in the chart below. This profile is typical for a site that only uses natural gas for space heating. Figure 10 - Natural Gas Usage Figure 11 - Natural Gas Usage Gas Billing Data for Brick Township Board of Education Natural Gas Period Days in Usage Ending Period (Therms) Natural Gas Cost 4/16/ $320 5/18/ $99 6/17/ $50 7/21/ $25 8/14/ $20 9/16/ $25 10/14/ $49 11/13/ $129 12/17/ $279 1/19/ $345 2/13/ $771 3/16/ $639 Totals 365 2,927 $2, ,927 $2,751 LGEA: Energy Audit Report BOE Warehouse 11

17 3.4 Benchmarking This facility was benchmarked using Portfolio Manager, an online tool created and managed by the United States Environmental Protection Agency (EPA) through the ENERGY STAR program. Portfolio Manager analyzes your building s consumption data, cost information, and operational use details and then compares its performance against a national median for similar buildings of its type. Metrics provided by this analysis are Energy Use Intensity (EUI) and an ENERGY STAR score for select building types. The EUI is a measure of a facility s energy consumption per square foot, and it is the standard metric for comparing buildings energy performance. Comparing the EUI of a building with the national median EUI for that building type illustrates whether that building uses more or less energy than similar buildings of its type on a square foot basis. EUI is presented in terms of site energy and source energy. Site energy is the amount of fuel and electricity consumed by a building as reflected in utility bills. Source energy includes fuel consumed to generate electricity consumed at the site, factoring in electric production and distribution losses for the region. Figure 12 - Energy Use Intensity Comparison Existing Conditions Energy Use Intensity Comparison - Existing Conditions Brick Township Board of Education National Median Building Type: Garage Source Energy Use Intensity (kbtu/ft 2 ) Site Energy Use Intensity (kbtu/ft 2 ) Implementation of all recommended measures in this report would improve the building s estimated EUI significantly, as shown in the table below: Figure 13 - Energy Use Intensity Comparison Following Installation of Recommended Measures Energy Use Intensity Comparison - Following Installation of Recommended Measures Brick Township Board of Education National Median Building Type: Garage Source Energy Use Intensity (kbtu/ft 2 ) Site Energy Use Intensity (kbtu/ft 2 ) Many types of commercial buildings are also eligible to receive an ENERGY STAR score. This score is a percentile ranking from 1 to 100. It compares your building s energy performance to similar buildings nationwide. A score of 50 represents median energy performance, while a score of 75 means your building performs better than 75 percent of all similar buildings nationwide and may be eligible for ENERGY STAR certification. The score for this building is 48. A Portfolio Manager Statement of Energy Performance (SEP) was generated for this facility, see Appendix B: ENERGY STAR Statement of Energy Performance. For more information on ENERGY STAR certification go to: A Portfolio Manager account has been created online for your facility and you will be provided with the login information for the account. We encourage you to update your utility information in Portfolio Manager regularly, so that you can keep track of your building s performance. Free online training is available to help you use ENERGY STAR Portfolio Manager to track your building s performance at: LGEA: Energy Audit Report BOE Warehouse 12

18 3.5 Energy End-Use Breakdown In order to provide a complete overview of energy consumption across building systems, an energy balance was performed at this facility. An energy balance utilizes standard practice engineering methods to evaluate all components of the various electric and fuel-fired systems found in a building to determine their proportional contribution to overall building energy usage. This chart of energy end uses highlights the relative contribution of each equipment category to total energy usage. This can help determine where the greatest benefits might be found from energy efficiency measures. Figure 14 - Energy Balance (kbtu/ft 2 and %) Energy Intensity by End Use (kbtu/sqft) 0.14, 0% 0.70, 2% 0.51, 2% Lighting Systems Motor-Driven Systems Electric HVAC Fuel-Fired HVAC Domestic Water Heating Food Service & Refrigeration Plug Loads 4.36, 12% 0.48, 1% 0.46, 1% 29.58, 82% LGEA: Energy Audit Report BOE Warehouse 13

19 4 ENERGY CONSERVATION MEASURES Level of Analysis The goal of this audit report is to identify potential energy efficiency opportunities, help prioritize specific measures for implementation, and provide information to the BOE Warehouse regarding financial incentives for which they may qualify to implement the recommended measures. For this audit report, most measures have received only a preliminary analysis of feasibility which identifies expected ranges of savings and costs. This level of analysis is usually considered sufficient to demonstrate project costeffectiveness and help prioritize energy measures. are based on the New Jersey Clean Energy Program Protocols to Measure Resource dated June 29, 2016 approved by the New Jersey Board of Public Utilities. Further analysis or investigation may be required to calculate more precise savings based on specific circumstances. A higher level of investigation may be necessary to support any custom SmartStart or Pay for Performance, or Direct Install incentive applications. Financial incentives for the ECMs identified in this report have been calculated based the NJCEP prescriptive SmartStart program. Some measures and proposed upgrade projects may be eligible for higher incentives than those shown below through other NJCEP programs as described in Section 8. The following sections describe the evaluated measures. 4.1 Recommended ECMs The measures below have been evaluated by the auditor and are recommended for implementation at the facility. Figure 15 Summary of Recommended ECMs Energy Conservation Measure Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive * Net Cost Simple Payback Period (yrs)** CO 2 e Emissions Reduction (lbs) Lighting Upgrades 6, $ $9, $ $8, ,534 ECM 1 Install LED Fixtures $ $ $0.00 $ ECM 2 Retrofit Fluorescent Fixtures with LED Lamps and Drivers 5, $ $8, $ $7, ,553 Lighting Control Measures 1, $ $1, $ $1, ,709 ECM 3 Install Occupancy Sensor Lighting Controls 1, $ $1, $ $1, ,709 TOTALS 8, $1, $11, $1, $9, ,243 * - All incentives presented in this table are based on NJ Smart Start Building equipment incentives and assume proposed equipment meets minimum performance criteria for that program. ** - Simple Payback Period is based on net measure costs (i.e. after incentives). LGEA: Energy Audit Report BOE Warehouse 14

20 4.1.1 Lighting Upgrades Recommended upgrades to existing lighting fixtures are summarized in Figure 16 below. Figure 16 Summary of Lighting Upgrade ECMs Energy Conservation Measure Lighting Upgrades During lighting upgrade planning and design, we recommend a comprehensive approach that considers both the efficiency of the lighting fixtures and how they are controlled. ECM 1: Install LED Fixtures Summary of Measure Economics Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive * Net Cost Simple Payback Period (yrs)** CO 2 e Emissions Reduction (lbs) 6, $ $9, $ $8, ,534 ECM 1 Install LED Fixtures $ $ $0.00 $ ECM 2 Retrofit Fluorescent Fixtures with LED Lamps and Drivers 5, $ $8, $ $7, ,553 Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive Net Cost Simple Payback Period (yrs) CO 2 e Emissions Reduction (lbs) $ $ $0.00 $ Measure Description We recommend installing LED retrofit kits to replace compact fluorescent (CFL) recessed can lighting on the exterior of building and upgrading all exterior light fixtures to high performance LED light fixtures. This measure saves energy by installing LEDs which use less power than other technologies with a comparable light output. Additional savings from lighting maintenance can be anticipated since LEDs have lifetimes which are more than twice that of a fluorescent tubes and more than 10 times longer than many incandescent lamps. LGEA: Energy Audit Report BOE Warehouse 15

21 ECM 2: Retrofit Fluorescent Fixtures with LED Lamps and Drivers Summary of Measure Economics Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive Net Cost Simple Payback Period (yrs) CO 2 e Emissions Reduction (lbs) 5, $ $8, $ $7, ,553 Measure Description We recommend retrofitting existing interior fluorescent T8 fixtures by removing fluorescent tubes and ballasts and replacing them with LEDs and LED drivers (if necessary) that are designed to be used retrofitted fluorescent T8 fixtures. The proposed upgrade would use the existing fixture housing but replace fixture components with more efficient LED lighting technology. This measure saves energy by installing LEDs which use less power than other lighting technologies yet provide equivalent lighting output for the space. Additional savings from lighting maintenance can be anticipated since LEDs have lifetimes which are more than twice that of a fluorescent tubes and more than 10 times longer than many incandescent lamps Lighting Control Measures Figure 17 Summary of Lighting Control ECMs Peak Electric Demand Fuel Energy Cost Energy Conservation Measure (kwh) (kw) (MMBtu) Install Cost Incentive Net Cost * Simple CO 2 e Payback Emissions Period Reduction (yrs)** (lbs) Lighting Control Measures 1, $ $1, $ $1, ,709 ECM 3 Install Occupancy Sensor Lighting Controls 1, $ $1, $ $1, ,709 During lighting upgrade planning and design, we recommend a comprehensive approach that considers both the efficiency of the lighting fixtures and how they are controlled. ECM 3: Install Occupancy Sensor Lighting Controls Summary of Measure Economics Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive Net Cost Simple Payback Period (yrs) CO 2 e Emissions Reduction (lbs) 1, $ $1, $ $1, ,709 Measure Description We recommend installing occupancy sensors to control lighting fixtures that are currently controlled by manual switches in all restrooms, storage rooms, and offices areas. Lighting sensors detect occupancy LGEA: Energy Audit Report BOE Warehouse 16

22 using ultrasonic and/or infrared sensors. This measure would save additional energy by ensuring that lights are on only when spaces are occupied. For most space types, we recommend lighting controls use dual technology sensors, which can eliminate the possibility of any lights turning off unexpectedly. Lighting systems are enabled when an occupant is detected. Fixtures are automatically turned off after an area has been vacant for a preset period. Some controls also provide dimming options and all modern occupancy controls can be easily over-ridden by room occupants to allow them to manually turn fixtures on or off, as desired. Energy savings results from only operating lighting systems when they are required. Occupancy sensors may be mounted on the wall at existing switch locations, mounted on the ceiling, or in remote locations. In general, wall switch replacement sensors are recommended for single occupant offices and other small rooms. Ceiling-mounted or remote mounted sensors are used in locations without local switching or where wall switches are not in the line-of-sight of the main work area and in large spaces. We recommend a comprehensive approach to lighting design that upgrades both the lighting fixtures and the controls together for maximum energy savings and improved lighting for occupants. 4.2 ECMs Evaluated But Not Recommended The measures below have been evaluated by the auditor but are not recommended for implementation at the facility. Reasons for exclusion can be found in each measure description section. Figure 18 Summary of Measures Evaluated, But Not Recommended Energy Conservation Measure Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive * Net Cost Simple Payback Period (yrs)** Domestic Water Heating Upgrade 2, $ $ $ $ ,234 Install T ankless Water Heater 2, $ $ $ $ ,234 TOTALS 2, $ $ $ $ ,234 * - All incentives presented in this table are based on NJ Smart Start Building equipment incentives and assume proposed equipment meets minimum performance criteria for that program. ** - Simple Payback Period is based on net measure costs (i.e. after incentives). CO 2 e Emissions Reduction (lbs) Install Tankless Water Heater Summary of Measure Economics Electric (kwh) Peak Demand (kw) Fuel (MMBtu) Energy Cost Install Cost Incentive Net Cost Simple Payback Period (yrs) CO 2 e Emissions Reduction (lbs) 2, $ $ $ $ ,234 Measure Description We evaluated replacement of the existing electric storage tank water heater with a gas-fired tankless water heating system. Tankless water heaters (a.k.a. on-demand water heaters ) only heat water when hot water is needed. Water is heated as it flows through the pipe to the hot water tap. Energy savings from a tankless water heater is based from eliminating heat losses associated with maintaining unnecessary standby hot water capacity. LGEA: Energy Audit Report BOE Warehouse 17

23 Reasons for not Recommending Our analysis showed that switching from an electric hot water heater to an on-demand, gas-fired hot water heater would be a cost-effective measure for the facility. This upgrade would increase gas usage on the site, but normally we would recommend this upgrade, because gas is cheaper than electricity on a BTU basis. However, in this case, continuing to heat hot water at the site with electricity might be the better option. That is because the site has the potential to lower its average cost of electric power, through installation of a rooftop solar array and that could potentially replace nearly all of its current electric service (See Section 6 for more details). If the site is developed for solar power generation as we recommend, then it would not make sense to switch to gas-fired water heating at the same time. On the other hand, if Brick Township BOE decides against pursuing solar development of the Warehouse site, then we would recommend upgrading the current water heater with a new gas-fired, tankless model. LGEA: Energy Audit Report BOE Warehouse 18

24 5 ENERGY EFFICIENT BEST PRACTICES In addition to the quantifiable savings estimated in Section 4, a facility s energy performance can also be improved through application of many low cost or no-cost energy efficiency strategies. By employing certain behavioral and operational changes and performing routine maintenance on building systems, equipment lifetime can be extended; occupant comfort, health and safety can be improved; and energy and O&M costs can be reduced. The recommendations below are provided as a framework for developing a whole building maintenance plan that is customized to your facility. The recommendations below are for informational purposes only and do not reflect actual efforts actively being performed by Brick Township Board of Education. Close Doors and Windows Ensure doors and windows are closed in conditioned spaces. Leaving doors and windows open leads to a significant increase in heat transfer between conditioned spaces and the outside air. Reducing a facility s air changes per hour (ACH) can lead to increased occupant comfort as well as significant heating and cooling savings, especially when combined with proper HVAC controls and adequate ventilation. Practice Proper Use of Thermostat Schedules and Temperature Resets Ensure thermostats are correctly set back. By employing proper set back temperatures and schedules, facility heating and cooling costs can be reduced dramatically during periods of low or no occupancy. As such, thermostats should be programmed for a setback of 5-10 F during low occupancy hours (reduce heating setpoints and increase cooling setpoints). Cooling load can be reduced further by increasing the facility s occupied setpoint temperature. In general, during the cooling season, thermostats should be set as high as possible without sacrificing occupant comfort. Plug Load Controls There are a variety of ways to limit the energy use of plug loads including increasing occupant awareness, removing under-utilized equipment, installing hardware controls, and using software controls. Some control steps to take are to enable the most aggressive power settings on existing devices or install load sensing or occupancy sensing (advanced) power strips. For additional information refer to Plug Load Best Practices Guide Water Conservation Installing low-flow faucets or faucet aerators, low-flow showerheads, and kitchen sink pre-rinse spray valves saves both energy and water. These devices save energy by reducing the overall amount of hot water used hence reducing the energy used to heat the water. The flow ratings for EPA WaterSense ( ) labeled devices are 1.5 gallons per minute (gpm) for bathroom faucets, 2.0 gpm for showerheads, and 1.28 gpm for pre-rinse spray valves. Installing dual flush or low-flow toilets and low-flow or waterless urinals are additional ways to reduce the sites water use, however, these devices do not provide energy savings at the site level. Any reduction in water use does however ultimately reduce grid level electricity use since a significant amount of electricity is used to deliver water from reservoirs to end users. The EPA WaterSense ratings for urinals is 0.5 gallons per flush (gpf) and toilets that use as little as 1.28 gpf (this is lower than the current 1.6 gpf federal standard). LGEA: Energy Audit Report BOE Warehouse 19

25 6 ON-SITE GENERATION MEASURES On-site generation measure options include both renewable (e.g., solar, wind) and non-renewable (e.g., fuel cells) on-site technologies that generate power to meet all or a portion of the electric energy needs of a facility, often repurposing any waste heat where applicable. Also referred to as distributed generation, these systems contribute to Greenhouse Gas (GHG) emission reductions, demand reductions and reduced customer electricity purchases, resulting in the electric system reliability through improved transmission and distribution system utilization. The State of New Jersey s Energy Master Plan (EMP) encourages new distributed generation of all forms and specifically focuses on expanding use of combined heat and power (CHP) by reducing financial, regulatory and technical barriers and identifying opportunities for new entries. The EMP also outlines a goal of 70% of the State s electrical needs to be met by renewable sources by Preliminary screenings were performed to determine the potential that a generation project could provide a cost-effective solution for your facility. Before making a decision to implement, a feasibility study should be conducted that would take a detailed look at existing energy profiles, siting, interconnection, and the costs associated with the generation project including interconnection costs, departing load charges, and any additional special facilities charges. 6.1 Photovoltaic Sunlight can be converted into electricity using photovoltaics (PV) modules. Modules are racked together into an array that produces direct current (DC) electricity. The DC current is converted to alternating current (AC) through an inverter. The inverter is interconnected to the facility s electrical distribution system. The amount of unobstructed area available determines how large of a solar array can be installed. The size of the array combined with the orientation, tilt, and shading elements determines the energy produced. A preliminary screening based on the facility s electric demand, size and location of free area, and shading elements shows that the facility has good potential for cost effective installation of a solar PV array. Brick Township Board of Education has on-going installations of solar energy projects at several schools. The rooftop area of the Warehouse is much smaller, but because the energy demands are relatively low at the site, a solar array at the Warehouse site could provide nearly all of the building s electric power needs. The front of the building faces south-southwest. According to PV-Watts 1 (an online solar calculator of the US Dept. of Energy) the building has sufficient unshaded rooftop space available to accommodate a solar array of up to about 25 kw DC of solar generating capacity. However, the building s average power demand is only about 9 kw of electric power. TRC estimates that the building s total annual electric consumption could be served by a PV array less than one-third the size of the available roof space. We estimate that a 7.8-kW PV array, installed on the building s front rooftop, would generate about 10,626 kwh per year. Such an array would offset about 95% the building s annual electric needs - i.e. after implementation of the lighting upgrades recommended in this report. The array would occupy only 1 LGEA: Energy Audit Report BOE Warehouse 20

26 about 560 ft 2 of available roof space. An image of the available roof space is shown below. The estimated costs and savings for such an installations are shown in the Figure 19 below. Image 6: Warehouse rooftop (approximate size of proposed solar PV array) Figure 19 costs and benefits for a 7.8-kW solar array on this site Total Installed Cost $27,300 $ Value of Electric Generation per Year $1, $ Income from SRECS $2, $ Total Economic Value per Year $3, $ Simple Payback Period 7.36 years We estimate that the proposed array would pay for itself in about 7.4 years. For this analysis we assumed an installed cost of about $3.50 per watt and a Solar Renewable Energy Certificate (SREC) value of $235/MWh. These values are based on recent experience for similar commercial solar projects installed in New Jersey. Solar projects must register their projects in the SREC Registration Program prior to the start of construction in order to establish the project s eligibility to earn SRECs. Registration of the intent to participate in New Jersey's solar marketplace provides market participants with information about developed new solar projects and insight into future SREC pricing. Refer to Section 8.3 for additional information. For more information on solar PV technology and commercial solar markets in New Jersey, or to find a qualified solar installer, who can provide a more detailed assessment of the specific costs and benefits of solar develop of the site, please visit the following links below: - Basic Info on Solar PV in NJ: - NJ Solar Market FAQs: Approved Solar Installers in the NJ Market: LGEA: Energy Audit Report BOE Warehouse 21

27 6.2 Combined Heat and Power Combined heat and power (CHP) is the on-site generation of electricity along with the recovery of heat energy, which is put to beneficial use. Common technologies for CHP include reciprocating engines, microturbines, fuel cells, backpressure steam turbines, and (at large facilities) gas turbines. Electric generation from a CHP system is typically interconnected to local power distribution systems. Heat is recovered from exhaust and ancillary cooling systems and interconnected to the existing hot water (or steam) distribution systems. CHP systems are typically used to produce a portion of the electric power used onsite by a facility, with the balance of electric power needs supplied by grid purchases. The heat is used to supplement (or supplant) existing boilers for the purpose of space heating and/or domestic hot water heating. Waste heat can also be routed through absorption chillers for the purpose of space cooling. The key criteria used for screening, however, is the amount of time the system operates at full load and the facility s ability to use the recovered heat. Facilities with continuous use for large quantities of waste heat are the best candidates for CHP. A preliminary screening based on heating and electrical demand, siting, and interconnection shows that the facility has a Low potential for installing a cost-effective CHP system. There is no thermal load that could reasonably be met by a CHP at the site. In our opinion, the facility does not appear to meet the minimum requirements for a cost-effective CHP installation. LGEA: Energy Audit Report BOE Warehouse 22

28 7 DEMAND RESPONSE Demand Response (DR) is a program designed to reduce the electric load of commercial facilities when electric wholesale prices are high or when the reliability of the electric grid is threatened due to peak demand. Demand Response service providers (a.k.a. Curtailment Service Providers) are registered with PJM, the independent system operator (ISO) for mid-atlantic state region that is charged with maintaining electric grid reliability. By enabling grid operators to call upon Curtailment Service Providers and commercial facilities to reduce electric usage during times of peak demand, the grid is made more reliable and overall transmission costs are reduced for all ratepayers. Curtailment Service Providers provide regular payments to medium and large consumers of electric power for their participation in DR programs. Program participation is voluntary and participants receive payments whether or not their facility is called upon to curtail their electric usage. Typically an electric customer needs to be capable of reducing their electric demand, within minutes, by at least 100 kw or more in order to participate in a DR program. Customers with a greater capability to quickly curtail their demand during peak hours will receive higher payments. Customers with back-up generators onsite may also receive additional DR payments for their generating capacity if they agree to run the generators for grid support when called upon. Eligible customers who have chosen to participate in a DR programs often find it to be a valuable source of revenue for their facility because the payments can significantly offset annual electric costs. Participating customers can often quickly reduce their peak load through simple measures, such as temporarily raising temperature set points on thermostats, so that air conditioning units run less frequently, or agreeing to dim or shut off less critical lighting. This usually requires some level of building automation and controls capability to ensure rapid load reduction during a DR curtailment event. DR program participants may need to install smart meters or may need to also sub-meter larger energy-using equipment, such as chillers, in order to demonstrate compliance with DR program requirements. DR does not include the reduction of electricity consumption based on normal operating practice or behavior. For example, if a company s normal schedule is to close for a holiday, the reduction of electricity due to this closure or scaled-back operation is not considered a demand response activity in most situations. The first step toward participation in a DR program is to contact a Curtailment Service Provider. A list of these providers is available on PJM s website and it includes contact information for each company, as well as the states where they have active business ( PJM also posts training materials that are developed for program members interested in specific rules and requirements regarding DR activity ( along with a variety of other DR program information. Curtailment Service Providers typically offer free assessments to determine a facility s eligibility to participate in a DR program. They will provide details regarding program rules and requirements for metering and controls, assess a facility s ability to temporarily reduce electric load, and provide details on payments to be expected for participation in the program. Providers usually offer multiple options for DR to larger facilities and may also install controls or remote monitoring equipment of their own to help ensure compliance with all terms and conditions of a DR contract. In our opinion this site is not a good candidate for DR due to the minimal loads available to shed. LGEA: Energy Audit Report BOE Warehouse 23

29 8 PROJECT FUNDING / INCENTIVES The NJCEP is able to provide the incentive programs described below, and other benefits to ratepayers, because of the Societal Benefits Charge (SBC) Fund. The SBC was created by the State of New Jersey s Electricity Restructuring Law (1999), which requires all customers of investor-owned electric and gas utilities to pay a surcharge on their monthly energy bills. As a customer of a state-regulated electric or gas utility and therefore a contributor to the fund your organization is eligible to participate in the LGEA program and also eligible to receive incentive payment for qualifying energy efficiency measures. Also available through the NJBPU are some alternative financing programs described later in this section. Please refer to Figure 20 for a list of the eligible programs identified for each recommended ECM. Figure 20 - ECM Incentive Program Eligibility Energy Conservation Measure SmartStart Prescriptive SmartStart Custom Direct Install ECM 1 Install LED Fixtures X X ECM 2 Retrofit Fluorescent Fixtures with LED Lamps and Drivers X X ECM 3 Install Occupancy Sensor Lighting Controls X X Pay For Performance Existing Buildings SmartStart is generally well-suited for implementation of individual measures or small group of measures. It provides flexibility to install measures at your own pace using in-house staff or a preferred contractor. Direct Install caters to small to mid-size facilities that can bundle multiple ECMs together. This can greatly simplify participation and may lead to higher incentive amounts, but requires the use of pre-approved contractors. The Pay for Performance (P4P) program is a whole-building energy improvement program designed for larger facilities. It requires implementation of multiple measures meeting minimum savings thresholds, as well as use of pre-approved consultants. The Large Energy Users Program (LEUP) is available to New Jersey s largest energy users giving them flexibility to install as little or as many measures, in a single facility or several facilities, with incentives capped based on the entity s annual energy consumption. LEUP applicants can use in-house staff or a preferred contractor. Generally, the incentive values provided throughout the report assume the SmartStart program is utilized because it provides a consistent basis for comparison of available incentives for various measures, though in many cases incentive amounts may be higher through participation in other programs. Brief descriptions of all relevant financing and incentive programs are located in the sections below. Further information, including most current program availability, requirements, and incentive levels can be found at: LGEA: Energy Audit Report BOE Warehouse 24

30 8.1 SmartStart Overview The SmartStart program offers incentives for installing prescriptive and custom energy efficiency measures at your facility. Routinely the program adds, removes or modifies incentives from year to year for various energy efficiency equipment based on market trends and new technologies. Equipment with Prescriptive Incentives Currently Available: Electric Chillers Electric Unitary HVAC Gas Cooling Gas Heating Gas Water Heating Ground Source Heat Pumps Lighting Lighting Controls Refrigeration Doors Refrigeration Controls Refrigerator/Freezer Motors Food Service Equipment Variable Frequency Drives Most equipment sizes and types are served by this program. This program provides an effective mechanism for securing incentives for energy efficiency measures installed individually or as part of a package of energy upgrades. Incentives The SmartStart prescriptive incentive program provides fixed incentives for specific energy efficiency measures, whereas the custom SmartStart program provides incentives for more unique or specialized technologies or systems that are not addressed through prescriptive incentive offerings for specific devices. Since your facility is an existing building, only the retrofit incentives have been applied in this report. Custom Measure incentives are calculated at $0.16/kWh and $1.60/therm based on estimated annual savings, capped at 50% of the total installed incremental project cost, or a project cost buy down to a one year payback (whichever is less. Program incentives are capped at $500,000 per electric account and $500,000 per natural gas account, per fiscal year. How to Participate To participate in the SmartStart program you will need to submit an application for the specific equipment to be installed. Many applications are designed as rebates, although others require application approval prior to installation. Applicants may work with a contractor of their choosing and can also utilize internal personnel, which provides added flexibility to the program. Using internal personnel also helps improve the economics of the ECM by reducing the labor cost that is included in the tables in this report. Detailed program descriptions, instructions for applying and applications can be found at: LGEA: Energy Audit Report BOE Warehouse 25

31 8.2 Direct Install Overview Direct Install is a turnkey program available to existing small to medium-sized facilities with a peak electric demand that does not exceed 200 kw for a recent 12-month period. You will work directly with a preapproved contractor who will perform a free energy assessment at your facility, identify specific eligible measures, and provide a clear scope of work for installation of selected measures. Energy efficiency measures may include lighting and lighting controls, refrigeration, HVAC, motors, variable speed drives and controls. Incentives The program pays up to 70% of the total installed cost of eligible measures, up to $125,000 per project. Direct Install participants will also be held to a fiscal year cap of $250,000 per entity. How to Participate To participate in the Direct Install program you will need to contact the participating contractor who the region of the state where your facility is located. A complete list of Direct Install program partners is provided on the Direct Install website linked below. The contractor will be paid the measure incentives directly by the program which will pass on to you in the form of reduced material and implementation costs. This means up to 70% of eligible costs are covered by the program, subject to program caps and eligibility, while the remaining 30% of the cost is paid to the contractor by the customer. Since Direct Install offers a free assessment of eligible measures, Direct Install is also available to small businesses and other commercial facilities too that may not be eligible for the more detailed facility audits provided by LGEA. Detailed program descriptions and applications can be found at: LGEA: Energy Audit Report BOE Warehouse 26

32 8.3 SREC Registration Program The SREC (Solar Renewable Energy Certificate) Registration Program (SRP) is used to register the intent to install solar projects in New Jersey. Rebates are not available for solar projects, but owners of solar projects MUST register their projects in the SRP prior to the start of construction in order to establish the project s eligibility to earn SRECs. Registration of the intent to participate in New Jersey's solar marketplace provides market participants with information about the pipeline of anticipated new solar capacity and insight into future SREC pricing. After the registration is accepted, construction is complete, and final paperwork has been submitted and is deemed complete, the project is issued a New Jersey certification number which enables it to generate New Jersey SRECs. SREC s are generated once the solar project has been authorized to be energized by the Electric Distribution Company (EDC). Each time a solar installation generates 1,000 kilowatt-hours (kwh) of electricity, an SREC is earned. Solar project owners report the energy production to the SREC Tracking System. This reporting allows SREC s to be placed in the customer's electronic account. SRECs can then be sold on the SREC Tracking System, providing revenue for the first 15 years of the project's life. Electricity suppliers, the primary purchasers of SRECs, are required to pay a Solar Alternative Compliance Payment (SACP) if they do not meet the requirements of New Jersey s Solar RPS. One way they can meet the RPS requirements is by purchasing SRECs. As SRECs are traded in a competitive market, the price may vary significantly. The actual price of an SREC during a trading period can and will fluctuate depending on supply and demand. Information about the SRP can be found at: Energy Improvement Program The Energy Improvement Program (ESIP) is an alternate method for New Jersey s government agencies to finance the implementation of energy conservation measures. An ESIP is a type of performance contract, whereby school districts, counties, municipalities, housing authorities and other public and state entities enter in to contracts to help finance building energy upgrades. This is done in a manner that ensures that annual payments are lower than the savings projected from the ECMs, ensuring that ESIP projects are cash flow positive in year one, and every year thereafter. ESIP provides government agencies in New Jersey with a flexible tool to improve and reduce energy usage with minimal expenditure of new financial resources. NJCEP incentive programs can be leveraged to help further reduce the total project cost of eligible measures. This LGEA report is the first step to participating in ESIP. Next, you will need to select an approach for implementing the desired ECMs: (1) Use an Energy Services Company or ESCO. (2) Use independent engineers and other specialists, or your own qualified staff, to provide and manage the requirements of the program through bonds or lease obligations. (3) Use a hybrid approach of the two options described above where the ESCO is utilized for some services and independent engineers, or other specialists or qualified staff, are used to deliver other requirements of the program. After adopting a resolution with a chosen implementation approach, the development of the Energy Plan (ESP) can begin. The ESP demonstrates that the total project costs of the ECMs are offset by the energy savings over the financing term, not to exceed 15 years. The verified savings will then be used to pay for the financing. LGEA: Energy Audit Report BOE Warehouse 27

33 The ESIP approach may not be appropriate for all energy conservation and energy efficiency improvements. Entities should carefully consider all alternatives to develop an approach that best meets their needs. A detailed program descriptions and application can be found at: Please note that ESIP is a program delivered directly by the NJBPU and is not an NJCEP incentive program. As mentioned above, you may utilize NJCEP incentive programs to help further reduce costs when developing the ESP. You should refer to the ESIP guidelines at the link above for further information and guidance on next steps. LGEA: Energy Audit Report BOE Warehouse 28

34 9 ENERGY PURCHASING AND PROCUREMENT STRATEGIES 9.1 Retail Electric Supply Options In 1999, New Jersey State Legislature passed the Electric Discount & Energy Competition Act (EDECA) to restructure the electric power industry in New Jersey. This law deregulated the retail electric markets, allowing all consumers to shop for service from competitive electric suppliers. The intent was to create a more competitive market for electric power supply in New Jersey. As a result, utilities were allowed to charge Cost of Service and customers were given the ability to choose a third party (i.e. non-utility) energy supplier. Energy deregulation in New Jersey has increased energy buyers options by separating the function of electricity distribution from that of electricity supply. So, though you may choose a different company from which to buy your electric power, responsibility for your facility s interconnection to the grid and repair to local power distribution will still reside with the traditional utility company serving your region. If your facility is not purchasing electricity from a third party supplier, consider shopping for a reduced rate from third party electric suppliers. If your facility is purchasing electricity from a third party supplier, review and compare prices at the end of the current contract or every couple years. A list of third party electric suppliers, who are licensed by the state to provide service in New Jersey, can be found online at: Retail Natural Gas Supply Options The natural gas market in New Jersey has also been deregulated. Most customers that remain with the utility for natural gas service pay rates that are market-based and that fluctuate on a monthly basis. The utility provides basic gas supply service (BGSS) to customers who choose not to buy from a third party supplier for natural gas commodity. A customer s decision about whether to buy natural gas from a retail supplier is typically dependent upon whether a customer seeks budget certainty and/or longer-term rate stability. Customers can secure longer-term fixed prices by signing up for service through a third party retail natural gas supplier. Many larger natural gas customers may seek the assistance of a professional consultant to assist in their procurement process. If your facility is not purchasing natural gas from a third party supplier, consider shopping for a reduced rate from third party natural gas suppliers. If your facility is purchasing natural gas from a third party supplier, review and compare prices at the end of the current contract or every couple years. A list of third party natural gas suppliers, who are licensed by the state to provide service in New Jersey, can be found online at: LGEA: Energy Audit Report BOE Warehouse 29

35 Appendix A: Equipment Inventory & Recommendations Lighting Inventory & Recommendations Location Existing Conditions Proposed Conditions Energy Impact & Financial Analysis Fixture Quantity Fixture Description Control System Watts per Fixture Operating Hours Fixture Recommendation Add Controls? Fixture Quantity Fixture Description Grounds Shop 6 Linear Fluorescent - T 8: 4' T 8 (32W) - 2L Wall Switch 62 1,500 Relamp & Reballast Yes 6 LED - Linear T ubes: (2) 4' Lamps Control System Occupancy Sensor Watts per Fixture Operating Hours Total Peak kw Total kwh Total MMBtu Total Energy Cost Total Installation Cost Total Incentives Simple Payback w/ Incentives in Years 29 1, $51.07 $ $ Grounds Shop 1 Exit Signs: LED - 2 W Lamp None 6 8,760 None No 1 Exit Signs: LED - 2 W Lamp None 6 8, $0.00 $0.00 $ Back Exterior 4 LED Screw-In Lamps: 18W LED Spotlight None 18 4,880 None No 4 LED Screw-In Lamps: 18W LED Spotlight None 18 4, $0.00 $0.00 $ Main Storage Area 36 Linear Fluorescent - T 8: 4' T 8 (32W) - 4L Wall Switch 114 2,000 Relamp & Reballast Yes 36 LED - Linear T ubes: (4) 4' Lamps Side Storage Area 1 Linear Fluorescent - T 8: 4' T 8 (32W) - 2L Wall Switch 62 1,000 Relamp & Reballast Yes 1 LED - Linear T ubes: (2) 4' Lamps Side Storage Area 4 Linear Fluorescent - T 8: 4' T 8 (32W) - 4L Wall Switch 114 1,000 Relamp & Reballast Yes 4 LED - Linear T ubes: (4) 4' Lamps Restroom 1 Linear Fluorescent - T 8: 4' T 8 (32W) - 4L Wall Switch 114 1,000 Relamp & Reballast Yes 1 LED - Linear T ubes: (4) 4' Lamps Occupancy Sensor Occupancy Sensor Occupancy Sensor Occupancy Sensor 58 1, , $ $6, $ $5.67 $ $ $39.95 $ $ $9.99 $ $ Receiving Office 1 Exit Signs: LED - 2 W Lamp None 6 8,760 None No 1 Exit Signs: LED - 2 W Lamp None 6 8, $0.00 $0.00 $ Receiving Office 4 Linear Fluorescent - T 8: 4' T 8 (32W) - 4L Wall Switch 114 2,000 Relamp & Reballast Yes 4 LED - Linear T ubes: (4) 4' Lamps Back Room 1 Linear Fluorescent - T 8: 4' T 8 (32W) - 4L Wall Switch 114 2,000 Relamp & Reballast Yes 1 LED - Linear T ubes: (4) 4' Lamps Occupancy Sensor Occupancy Sensor 58 1, $79.91 $ $ , $19.98 $ $ Exterior - Lot Side 1 LED Screw-In Lamps: 18W LED Spotlight None 18 4,880 None No 1 LED Screw-In Lamps: 18W LED Spotlight None 18 4, $0.00 $0.00 $ Exterior - Lot Side 4 Compact Fluorescent: 23W Screw-In CFL None 23 4,880 Fixture Replacement No 4 LED - Fixtures: Downlight Recessed None 10 4, $35.86 $ $ Exterior - Front 7 Compact Fluorescent: 23W Screw-In CFL None 23 4,860 Fixture Replacement No 7 LED - Fixtures: Downlight Recessed None 10 4, $62.50 $ $ Exterior - Far Side 3 Compact Fluorescent: 23W Screw-In CFL None 23 4,860 Fixture Replacement No 3 LED - Fixtures: Downlight Recessed None 10 4, $26.79 $ $ Local Government Energy Audit BOE Warehouse A-1

36 Motor Inventory & Recommendations Location Area(s)/System(s) Served Existing Conditions Proposed Conditions Energy Impact & Financial Analysis Motor Quantity Motor Application HP Per Motor Full Load Efficiency VFD Control? Operating Hours Install High Full Load Efficiency Efficiency Motors? Install VFDs? Number of VFDs Total Peak kw Total Total MMBtu kwh Total Energy Cost Total Installation Cost Total Incentives Simple Payback w/ Incentives in Years Restroom Restroom 1 Exhaust Fan % No 2,745 No 82.5% No $0.00 $0.00 $ Main Storage Area Garage Door 1 Other % No 2,745 No 82.5% No $0.00 $0.00 $ Electric HVAC Inventory & Recommendations Location Area(s)/System(s) Served Existing Conditions Proposed Conditions Energy Impact & Financial Analysis System Quantity System Type Cooling Capacity per Unit (Tons) Heating Capacity per Unit (kbtu/hr) Install High Efficiency System? System Quantity System Type Cooling Capacity per Unit (Tons) Heating Capacity per Unit (kbtu/hr) Cooling Mode Efficiency (SEER/EER) Heating Mode Efficiency (COP) Install Dual Enthalpy Economizer? Total Peak kw Total Total MMBtu kwh Total Energy Cost Total Installation Cost Total Incentives Simple Payback w/ Incentives in Years Receiving Office Receiving Office 1 Packaged Terminal HP No No $0.00 $0.00 $ Fuel Heating Inventory & Recommendations Location Area(s)/System(s) Served Existing Conditions Proposed Conditions Energy Impact & Financial Analysis System Quantity System Type Output Capacity per Unit (MBh) Install High Efficiency System? System Quantity System Type Output Capacity per Unit (MBh) Heating Efficiency Heating Efficiency Units Total Peak kw Total Total MMBtu kwh Total Energy Cost Total Installation Cost Total Incentives Simple Payback w/ Incentives in Years Warehouse Main Storage Area 2 Warm Air Unit Heater No $0.00 $0.00 $ Local Government Energy Audit BOE Warehouse A-2

37 DHW Inventory & Recommendations Location Area(s)/System(s) Served System Quantity Office Storage Room Restroom 1 Existing Conditions System Type Replace? System Quantity Storage T ank Water Heater ( 50 Gal) Proposed Conditions System Type Fuel Type System Efficiency Efficiency Units Energy Impact & Financial Analysis Total Peak kw Total Total MMBtu kwh Total Energy Cost Total Installation Cost Total Incentives Yes 1 T ankless Water Heater Natural Gas 82.00% EF , $ $ $ Simple Payback w/ Incentives in Years Commercial Refrigerator/Freezer Inventory & Recommendations Location Quantity Back Room 1 Plug Load Inventory Existing Conditions Proposed ConditEnergy Impact & Financial Analysis Simple Install ENERGY Total Total Total Refrigerator/ Freezer ENERGY STAR Total Peak Total Total Payback w/ STAR MMBtu Energy Cost Installation Type Qualified? kw kwh Incentives Incentives Equipment? Cost in Years Stand-Up Refrigerator, No No $0.00 $0.00 $ Solid Door (16-30 cu. ft.) Existing Conditions Location Quantity Equipment Description Energy Rate (W) ENERGY STAR Qualified? Receiving Office 1 Computer Yes Receiving Office 1 Monitor 80.0 Yes Receiving Office 2 Sm. Printer 14.0 Yes Receiving Office 1 Coffee Maker No Receiving Office 1 Clothes Washer Yes Local Government Energy Audit BOE Warehouse A-3

38 Appendix B: ENERGY STAR Statement of Energy Performance Local Government Energy Audit - BOE Warehouse B-1